When you purchase a Home, Condominium or Land in the province of Ontario you as a Buyer are subject to pay Land Transfer Tax, which is due to your representing Lawyer on closing. Below you will find a Land Transfer Tax Calculator which will help determine you Land Transfer Taxes owed. You can also view the Rates and perform the calculation yourself.
The land transfer tax (LTT) in Ontario is referred to as a marginal tax as each portion of your homes value is taxed at its own unique rate.
Illustrated below are the revised 2017 Provincial rates to calculate this marginal tax:
|Purchase price of home||Land Title Transfer Fee||First-time Homebuyer Rebate|
|Up to and including $55,000||0.5%||Full tax rebate|
|$55,000.01 to $250,000.00||1.0%||Full tax rebate|
|$250,000.01 to $368,333||1.5%||Full tax rebate|
|$368,334 to $400,000.00||1.5%||$4,000 tax rebate|
|$400,000.00 to $2,000,000.00||2.0%||$4,000 tax rebate|
|Over $2,000,000.00||2.5%||$4,000 tax rebate|
In 2006, as a taxation measure granted by the City of Toronto Act, 2006, the Toronto City Council approved that, effective February 1, 2008 That land transfer tax will be applied to all purchases on properties in the city of Toronto as well as the above illustrated Provincial Land Transfer Tax. It is important to understand this additional Toronto Land Transfer Tax when purchasing a home in Toronto as your LTT will be almost double the cost as opposed to you buying outside of the city of Toronto.